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M.D.C. Holdings Inc. Reports Operating Results (10-Q)

November 03, 2011 | About:
10qk

10qk

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M.D.C. Holdings Inc. (MDC) filed Quarterly Report for the period ended 2011-09-30.

M.d.c. Holdings Inc. has a market cap of $1.01 billion; its shares were traded at around $21.33 with and P/S ratio of 1. The dividend yield of M.d.c. Holdings Inc. stocks is 4.7%.

Highlight of Business Operations:

West Segment The increase in home sales revenue during the three months ended September 30, 2011 primarily was driven by closing 49 homes in our new Washington market, which generated $13.2 million in home sales revenue. Additionally, we closed 15 more homes in the Arizona market, which resulted in home sales revenue increasing by $3.0 million. This was partially offset by the impact of closing 35 fewer homes in our California and Nevada markets, which resulted in a $7.4 million decrease in home sales revenue. Additionally, a decrease of $64,600 in the average selling price of closed homes in the California market resulted in a $3.7 million decline in home sales revenue.

The decline in home sales revenue during the nine months ended September 30, 2011 primarily resulted from (1) closing 372 fewer homes in the Arizona, California and Nevada markets of this segment as this caused home sales revenue to decrease by $73.0 million and (2) a decline of $14.7 million associated with reductions in the average selling prices of homes in our Arizona and California markets. This was partially offset by the impact of closing 100 homes in our new Washington market, which generated $26.9 million of home sales revenue.

Interest in home cost of sales as a percent of home sale revenue was 2.5% and 2.6% during the three and nine months ended September 30, 2011, respectively, compared with 2.6% and 2.5% during the same periods of 2010.

Mountain Segment Home cost of sales decreased during the three months ended September 30, 2011 as we closed 39 fewer homes, which caused a $10.6 million decline and $2.7 million associated with adjustments to increase warranty reserves incurred in 2010 that were not incurred during 2011. These items partially were offset by a $4.3 million increase in home cost of construction associated with a change in the mix of homes that were closed during the 2011 period compared with the 2010 period.

Home cost of sales decreased during the nine months ended September 30, 2011 as we closed 108 fewer homes, which caused a $27.3 million decline and $3.1 million associated with adjustments to increase warranty reserves incurred in 2010 that were not incurred during 2011. These items partially were offset by a $16.2 million increase in home cost of construction associated with a change in the mix of homes that were closed during the 2011 period compared with the 2010 period.

Read the The complete Report

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